Lowman, read "La Jolla" for "Cornell" in the original post.
Allison Gordon result:
IV. CONCLUSION
For the foregoing reasons, it is hereby
ORDERED that Defendant Allison's Motion to Dismiss [Doc. # 32], which has been converted to a motion for summary judgment, is GRANTED. It is further
ORDERED that Defendant Allison's Motion for Partial Summary Judgment on Defendant's Counterclaim for Suit on Promissory Note and Brief in Support [Doc. # 37] is GRANTED. However, no payment on this judgment is due until all claims are fully and finally resolved by this Court. It is further
ORDERED that CSMG's request for attorneys' fees, which was contingent upon CSMG obtaining judgment in its favor on its breach of contract claim, is DENIED as moot.
SIGNED at Houston, Texas, this 30th day of September, 2008.
This case has been settled except for the $$ that CTGI will pay Gordon.
La Jolla claim:
Form 8-K for CSMG TECHNOLOGIES, INC.
5-Feb-2009
Triggering Events That Accelerate or Increase a Direct Financial Obligati Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
The Registrant ("CSMG") received on February 2, 2009 a certified letter dated January 28, 2009 from La Jolla Cove Investors, Inc. ("La Jolla") declaring an event of default with respect to a 6% Convertible Debenture dated November 17, 2008 in the principal amount of $1,500,000 that matures on November 30, 2011 ("First Convertible Debenture") issued under a Securities Purchase Agreement dated November 17, 2008. Under the Securities Purchase Agreement, La Jolla paid $125,000 to CSMG and issued a Secured Promissory Note (the "First Secured Note") in the amount of $1,375,000 dated November 17, 2008 that is due and payable on demand by CSMG at any time after November 30, 2011. La Jolla stated that an event of default had occurred under the Convertible Debenture following the entry of judgment against the Company and in favor of Banco Panamericano, Inc. in the amount of $726,491.41 on December 16, 2008 and the failure of CSMG to timely pay interest under the Debenture. La Jolla claims that it is entitled to $402,629.28 under the terms of the Debenture based upon acceleration of 118% of the principal of the Debenture together with all accrued and unpaid interest to the date of payment. CSMG is not aware of any other material obligations that it has that may arise, increase, be accelerated or become a direct financial obligation as a result of the above triggering event or the increase or acceleration of the Debenture to La Jolla.
This is a much uglier situation as La Jolla is a much fouler predator of small companies. Some here might claim that the amount owed is insignificant given the "billion dollar technologies" that CTGI has in its portfolio. I'd only point out that the company was in full possession of these technologies in late 2008 when, as some here also claimed, CTGI was in effect gagged by the Banco legal situation for close to a year.
Let's hope that DR addresses these legal situations openly and honestly and very soon, so that investors can know if the forward progress of the company will be hamstrung by them.
DR's history with the law has been less than stellar to put it mildly.
